Towerco data management: improving the relationship with MNOs

Towerco data management:

improving the relationship
with MNOs

Caroline Gabriel
Towerco data management: improving the relationship with MNOs

Contents Executive summary and recommendations

Analysis

About the author and Analysys Mason

Towerco data management: improving the relationship with MNOs 3

Executive summary

Mobile network operators (MNOs) are increasingly moving away Figure 1: Incompatible approaches to data reduce the
from owning cell towers and are relying on neutral host effectiveness of MNO–towerco partnerships
towercos. However, towercos’ approaches to data management
are rarely well-aligned to those of MNOs, thereby limiting the
business opportunities for both parties. Towercos must
therefore make a clear case for a multi-layered data analytics
strategy, and work on common frameworks with MNOs.
Many MNOs have sophisticated data strategies, but towercos are
still largely reliant on Excel to analyse their sites and power and
fibre assets. As towercos take on more assets and reduce costs
through automation and predictive maintenance, they will need to
define new data collection and management strategies. They
should work with MNOs on common frameworks so that both
sides can derive a greater value from their relationship.

KEY RECOMMENDATIONS

1. Towercos need to invest in an integrated data strategy in

order to extend their business models.
2. Towercos should adopt a multi-layered approach with some
near-term quick wins, as well as longer-term roadmaps
towards solutions such as AI.
3. MNOs and towercos should work together on common data
management approaches to increase the value of the
relationship for both sides.
Towerco data management: improving the relationship with MNOs 4

Recommendations

1
Towercos need to invest in an integrated data strategy in order to extend their business models to include new
assets and higher-value services.
The towerco business model is under pressure because of MNO consolidation, which has resulted in a decrease in
the number of clients but an increase in their negotiating power. This means that towercos must negotiate deals
more effectively, and extend their business models to include new revenue streams such as small cells. They must
replace their Excel-based approach with a fully integrated system of data collection and analytics.

2
Towercos should adopt a multi-layered approach with some near-term quick wins, as well as longer-term
roadmaps towards solutions such as AI.
A few towercos may choose to take a ‘big bang’ approach, but most will devise a strategy that delivers some quick
wins first due to concerns about IT spending and ROI. A typical progression would be first to improve the data
collection by replacing manual processes with automated sensor-based systems, then integrate all the data into a
common repository, apply analytics and finally, add predictive visits with capabilities that are supported by AI.

3
MNOs and towercos should work together on common data management approaches to increase the value of
the relationship for both sides.
MNOs are challenged by towercos’ immature data systems. It is hard for them to gain precise data about the sites
that they are using if they are relying on neutral hosts, and this can limit the effectiveness of their own RF planning
processes. MNOs and towercos must be able to share their respective data seamlessly, within the limits of
confidentiality, so that both parties can make better decisions, thereby improving the quality of the whole network.
Towerco data management: improving the relationship with MNOs

Contents Executive summary and recommendations

Analysis

About the author and Analysys Mason

Towerco data management: improving the relationship with MNOs 6

Challenge: towercos’ out-dated data management systems are limiting their

potential for future success
Towercos have not invested heavily in data collection and Figure 2: Top three towerco asset management objectives (the
analytics technologies. Indeed, most of them still mainly use percentage citing each as a top-three objective is indicated)¹
Excel to track assets, and many lack complete information
regarding their sites. Using data to automate processes, value
assets accurately and plan proactively will become critical as
towercos start to extend their business models to include city To reduce site costs by increasing
networks, edge computing, fibre and other elements. automation and preventative maintenance
72%
Analysys Mason conducted a survey of 48 towercos and MNO
tower management units in May–June 2019. According to this,
the top three objectives for the coming 3–5 years are as follows.
▪ To reduce site and maintenance costs, especially by
reducing the number of site visits (towercos’ biggest To improve the ability to track and
operating cost). understand all assets
▪ To manage increasingly large numbers of assets including
60%
small cells, fibre and edge nodes.
▪ To improve the ability to track assets and apply intelligence
to data in order to support better business decisions.
It will be very difficult to meet these objectives without the ability To manage increasingly large numbers of
to track data about each site in detail. A lack of data intelligence assets such as small cells
will affect towercos’ MNO customers too, since the MNOs will 52%
know less about their physical sites than about their active
equipment, thereby limiting their ability to plan and optimise
network performance in an integrated way. Source: Analysys Mason

¹ According to Analysys Mason’s survey of 48 towercos and MNO tower management units conducted in May and June 2019.
Towerco data management: improving the relationship with MNOs 7

Solution: towercos need to invest in an integrated data strategy in order to extend

their business models to include new assets and higher-value services
Spending restrictions are the main reason why most towercos Figure 3: Key drivers and barriers to investing in data
are still relying on outdated data collection and analysis management systems for towercos (the percentage citing each
techniques; other areas of investment have typically taken as a top-three objective is indicated)¹
priority.
However, towerco management units are increasingly recognising BARRIERS DRIVERS
that their business model is changing from that of a pure real
estate business (‘concrete and steel’) to something more
complex. As MNOs become consolidated, towercos must be
Identify
Align first where 5G
armed with deeper knowledge in order to negotiate effectively Top 5use
barriers Top 5 drivers
with these stronger clients. Towercos will also be pressurised to edge can
add new revenue streams. 1. cases to priorities,
Other spending 1. enhance
Reduce site costs, 72%
Towercos are expanding into small cells or edge computing, and telco’s
67%
2.
business
Improve MNO negotiating

Ease of leveraging assets

they are adding more value-added services including uptime 2.
sites
Immature solutions, 52% position, 63%
case
guarantees for sites and power. These new business 3. Unproven ROI, 48% 3. Predictive analytics, 54%
opportunities will rely heavily on new data systems. Towercos will 4. Risk of disruption, 21% 4. Manage complex assets,
need to scale up their systems so that they are able to track up to 52%
5. Too few case studies, 18%
100 times more assets over the next 5 years. They will need 5. Improve M&A value, 35%
information about each site that is much more accurate and in-
depth before they are able to apply service level agreements.
Currently, much of the basic data in towercos’ spreadsheets, such
as the height of the tower or the number of antennas on it, may
be wrong. Towercos need to capture new opportunities will help to
make a more compelling case for investing in systems which
collect data in a granular, automated way and then integrate it Source: Analysys Mason
into a common repository in order to apply deep analytics.
¹ According to Analysys Mason’s survey of 48 towercos and MNO tower management units conducted in May and June 2019.
Towerco data management: improving the relationship with MNOs 8

Solution: towercos should adopt a multi-layered approach with some near-term

quick wins, as well as longer-term roadmaps towards solutions such as AI
Towercos are not generally unaware of the benefits of a data Figure 4: The typical process through which towercos can
management strategy, but there is a large gap between their transform their data systems
aspirations and reality.
In an extreme example, two of the survey respondents admitted D A T A C O L L E C T IO N
only knowing the precise location of 35% of their sites, but they Replace site visits with the use
were keen to adopt AI-enabled analytics. Bridging these two of sensors and smart devices.
extremes in organisations that are generally conservative about
spending and unsure about ROI requires careful planning. A few
towercos may decide to leapfrog their competitors, and even
MNOs, by taking a ‘big bang’ approach, but it will be more DATA STORAGE
practical for most to adopt a step-by-step strategy. Store all data in a common,
multi-source framework.
Towercos should first identify some quick wins. These are
processes that provide significant short-term ROI, in order to instil
confidence in management, and meet at least a few objectives.
They can then build a richer, multi-layered architecture on top. DATA ANALYSIS
The first step for the majority of towercos should be to overhaul Adopt big data analytics to
provide rich decision support
their data collection techniques since so much basic information about assets.
is incomplete and inaccurate. There are now many mechanisms
through which towercos can automate most of the processes that
are currently carried out through site visits. Once the data itself is
ADOPTION OF AUTOMATION
of higher quality, towercos must integrate it all into a rich
Enhance analytics with machine
repository; they will then be better placed to adopt advanced learning and digital twin for
analytics over time, including machine learning and augmented predictive maintenance.
reality (for instance, a ‘digital twin’ of a tower, which can be used
to manage the physical asset from the cloud). Source: Analysys Mason
Towerco data management: improving the relationship with MNOs 9

Solution: MNOs and towercos should work together on common data management
approaches to increase the value of the relationship for both sides
MNOs are disadvantaged if their neutral host partners are Figure 5: The holistic view of the mobile network provided
unable fully to understand their sites and make strong through combined MNO and towerco data sets
business decisions.
MNOs’ superior data platforms may give them an upper hand
when negotiating with towercos, but that benefit is outweighed by Load
Power
the risk of making network plans and decisions based on an supply
imperfect understanding of the physical assets that support the Topology
Site
MNOs’ base stations. It is common, for instance, for MNOs’ radio
location
engineers to receive site plans from a towerco, in which many
sites are apparently located in the sea. Tower height

Ideally, an MNO should know as much about sites, power and

fibre when they have a neutral host partner as when they own RF plan Equipment
those assets themselves. If not, they will be challenged when they installed
start to densify their network plans for 5G, because they will not
fully understand the most efficient or productive locations, nor Power
the places where they most need to invest in new resources. output

It is possible for MNOs and their towerco partners to share their Radio
very different data sets, even within the limits set by technology Outages
confidentiality and competitive intelligence, so that a holistic plan
can be made to build, maintain and expand a network. This is Antenna
Performance
becoming even more business-critical as many towercos move to configuration
a ‘build-to-suit’ model in which they deploy sites to meet a certain
MNO’s needs. This customised approach has high value for both,
but only if they are exchanging information on a common basis.
Source: Analysys Mason
Towerco data management: improving the relationship with MNOs

Contents Executive summary and recommendations

Analysis

About the author and Analysys Mason

Towerco data management: improving the relationship with MNOs 11

About the author

Caroline Gabriel (Principal Analyst) leads Analysys Mason’s wireless research. She contributes to our Next-Generation Wireless Networks,
Operator Investment Strategies and Spectrum research programmes and works directly with our research clients to advise them on wireless
network trends and market developments. She has been engaged in technology analysis, research and consulting for 30 years, and has
focused entirely on mobile and wireless since 2002.
Towerco data management: improving the relationship with MNOs 12

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Towerco data management: improving the relationship with MNOs 13

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Towerco data management: improving the relationship with MNOs

PUBLISHED BY ANALYSYS MASON LIMITED IN JULY 2019

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